House Republicans are proposing a 7% reduction in the Securities and Exchange Commission (SEC) budget for 2026, aiming to cut enforcement funding for a regulation that mandates public companies to swiftly report cyberattacks. The proposed budget of $23.3 billion for multiple agencies, including the SEC, indicates an almost 8% overall reduction from the previous year. The SEC would receive approximately $2.03 billion, $153.9 million less than in fiscal year 2025, with specific spending bans, notably restricting funds from enforcing the cyber incident disclosure rule adopted in mid-2023. This rule requires companies to report cyber incidents within four days unless it poses national security risks. The budget plan has faced pushback from Democrats, labeling it a setback for average Americans, arguing it allows corporations to evade laws and enhances their wealth accumulation. Banking groups have likewise expressed concerns regarding the rule's implications, indicating that it has been exploited by criminals for malicious purposes, particularly affecting firms like Coinbase amidst data leak issues.

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